Macadamia prices hit Sh100 as harvest scheduling takes effect

Macadamia farmers are enjoying a remarkable turnaround, with farm-gate prices soaring past Sh100 per kilo, a dramatic rise from the Sh20 it traded last year.

This windfall comes as the government reintroduces the harvest scheduling system this harvest season, ending the open-window period introduced in 2023 to cushion the sector during the global market downturn caused by the Covid-19 pandemic.

Reports from county governments also indicate that production has expanded beyond traditional growing areas to regions such as Rift Valley, Western Kenya, Nyanza, Ukambani, and Taita Taveta.

Dr Bruno Linyiru, Chief Executive Officer of the Agricultural and Food Authority (AFA), says that improved global demand for macadamia nuts justifies closing the unrestricted harvesting period.

“This season’s production outlook is positive, and the market has significantly recovered,” he said.

Jane Maigua, Chairperson of the Macadamia Nut Association of Kenya (MACNUT), representative of nut processors, said the price rebound is a reflection of renewed global interest.

“Farmers who are also supplying quality nuts are now receiving over Sh100 per kilo, compared to as little as Sh20 last year. This is a big win for the farming community,” she said.

The Ministry of Agriculture said that the reintroduction of harvest scheduling aims to address a long-standing issue of premature harvesting driven by middlemen.

Brokers targeting China, the only country that imports unprocessed macadamia, often pressure farmers to pick immature nuts before they naturally fall, damaging both quality and future yields.

“Rather than waiting for nuts to fall naturally, brokers encourage farmers to shake trees and gather immature nuts quickly. This undermines quality and reduces earnings,” said Linyiru.

Maigua warned that despite the illusion of better prices from Chinese buyers, nearly 40 per cent of nuts are often rejected due to poor quality. These end up with local processors at much lower prices, ultimately shortchanging farmers and damaging Kenya’s international reputation.

He said the government’s intervention is showing results as farmers with high-quality nuts are fetching well above the recommended price of Sh100, with middlemen earning an additional Sh10 per kilo when selling to processors.

With production costs at around Sh20 per kilo, according to Wondernut Ltd, which has contracted several farmers, sellers are now seeing meaningful profits.

But processors said that there are still rogue brokers smuggling the nuts to Chinese dealers through Tanzania.

Julius Kimani, a macadamia farmer in Murang’a, said that the brokers are now buying the improved varieties at Sh105 and the traditional varieties at Sh100.